Published Date : Feb 18, 2016
Before 2015, analysts and experts within the oil and gas sector believed that the global oilfield equipment market would witness modest, if not steady, growth over the next couple of years. However, the present state of the overproduction of crude oil has resulted in several problems for an increasing number of companies.
Thousands Losing Jobs Due to Current Status of the Industry
On an individual basis, the plight of the oil and gas industry is not that disastrous. The parties who are currently bearing the brunt of the ongoing turbulence are those who are directly connected to the industry. The latest piece of bad news came from National Oilwell Varco, who had to shut down its plant in Houma earlier this month. This will result in almost 80 employees losing their job due to the ongoing global glut of crude oil. Last year, the region of Huoma Thibodaux saw over 2,500 job cuts in the oil and gas industry and experts believe that another 2,000 are expected to follow suit in the coming months. In fact, when it comes to employment, the US seems to be facing a major portion of the troublesome situation. Just a few years ago, the country presented a 3.20 per cent unemployment rate, which at that time was supposedly the lowest it had dropped to in a long time. At present, the unemployment rate has gone up to 6 per cent.
However, experts believe that there is still a sliver of hope for the oilfield services industry. Thanks to the recent surge in acquisitions and mergers in the oilfield equipment and services industry, this market is anticipated to witness a rise in business activity in the coming years. And as far as the North America market is concerned, it is presently still the largest and the most rapidly expanding region in the world owing to a rise in shale gas exploration.